The Senate has approved President Bola Tinubu’s request to secure fresh external loans totalling $6bn to fund budget deficits and key infrastructure projects.
The approval followed the consideration and adoption of a report presented by the Chairman of the Senate Committee on Local and Foreign Debts, Aliyu Wamakko.
The request, which was transmitted to the Senate earlier in the day, was read during plenary by the President of the Senate, Godswill Akpabio, who subsequently referred it to the committee for expedited review.
In his correspondence, Tinubu sought approval to borrow $5bn from Abu Dhabi Bank to finance the 2025 budget deficit and meet existing debt obligations.
In a separate request, the President also asked for approval to obtain a $1bn loan facility from UK Export Finance through Citibank, London, for the rehabilitation of critical port infrastructure.
Tinubu explained that the projects would focus on upgrading the Lagos Port Complex and Tin Can Island Port, with the aim of improving operational efficiency, enhancing safety standards, and boosting Nigeria’s non-oil trade capacity.
He added that the intervention would help reposition Nigeria as a major maritime hub while addressing longstanding challenges in the sector.
The Senate’s approval comes amid growing reliance by the Federal Government on both domestic and external borrowing to finance widening fiscal gaps.
Recall that the National Assembly had, four months ago, approved a request by the President to raise N1.15tn from the domestic debt market to fund the 2025 budget deficit.
The 2025 Appropriation Act provides for a total expenditure of N59.99tn, reflecting an increase from the N54.74tn initially proposed by the Executive, further underscoring the government’s dependence on borrowing to bridge revenue shortfalls.
